Earnings Presentation for FY2021 and medium-term management plan: Question & Answer Session (Summary)

From 11:30 A.M. on Wednesday, May 11, 2022, FIELDS CORPORATION (hereinafter, “FIELDS”) held a briefing for the financial results for the year ended March 31, 2022 and medium-term management plan.
This page provides an overview of the main questions and answers (summaries) at the briefing.

Question & Answer Session (Summary)

[Contents and digital business]

Q1: I would like to hear about specific initiatives for metaverse-related business development.

A1: Various companies are looking forward to Ultraman appearing in the metaverse as a giant hero. Under such circumstances, with licensing to other companies as our base, we aim to enhance our knowledge and consider eventually doing something in-house.

Q2: Please tell us about the expected performance of the film SHIN ULTRAMAN and its impact on the results.

A2: We will refrain from commenting on the forecast of box office revenue and its impact on results of operations. The film will be the first release for the video business that is expected to generate a steady revenue while increasing the value of Ultraman brand. The production committee are also positive about the quality of the film.

Q3: Please tell us about the impact of the lock-down in China.

A3: If the lock-down continues for a long period of time, it is thought that it will also have a major impact on Tsuburaya Productions Co., Ltd. (hereinafter, “TPC”) business. On the other hand, if the lock-down is lifted, past experience suggests that the economy is recovering quickly, so the company believes that it will be able to recover thereafter, even if it is severe until the H1 of the fiscal year.

Q4: The core of contents and digital business is Ultraman, but we would like to ask whether there is room for consideration for the acquisition of other IP.

A4: IP like Ultraman are few and far between. It takes 20 to 30 years to nurture a single IP and it is difficult to create new one, so maybe there are options such as acquiring high-value IP, etc. However, first we want to focus on creating the Ultraman market in Japan, China, and North America, and then increase other IP.

Q5: Would you tell us your sales plan in the North American market?

A5: Currently, the company is in the process of building a foundation to cultivate the North American market, and the business in the North American market is positioned as the source of growth potential for the next phase of the current medium-term management plan.

[Pachinko and pachislot machines (hereinafter, “PS”) business]

Q6: Regarding the cyclicality of the market, I would like to ask why pachislot enters the “spring” season.

A6: Basically, the gaming aspect of pachinko machines must be equivalent to pachislot machines. Now, pachislot is lagging behind, but going forward, the company expects pachinko to gradually catch up with pachislot, such as the summer for pachinko and the spring for pachislot. We feel that PS machines currently under development, are closer to summer than spring.
*PS four season theory will be explained in the page 28 of briefing material.

Q7: The forecast for operating profit for FY2024 is ¥4.5 billion, but the forecast for unit sales is undecided. Are the remaining profits expected to be profits from the other service business, etc. while maintaining the sales level of 220,000 units in FY2022?

A7: The sales plan for new units from FY2023 onward is viewed conservatively from the viewpoint of material procurement risk. Even if unit sales remain flat, the company hopes to nurture businesses other than new unit sales, such as the digital communications business, into growth businesses and boost earnings.


Q8: Please tell us about your thinking and policy on dividends.

A8: We consider it our top priority to serve the interests of our shareholders.

Q9: Would you tell us the amount of investment in the three years of the medium-term management plan?

A9: We assume that approximately ¥10 billion will be invested to move into the next stage of growth, including business, human resources, and digitization.

Q10: Can you tell us your thoughts on foreign exchange risk?

A10: TPC considers this to be an advantage, and FIELDS does not expect it to have any particular impact.